Carbon Streaming Corporation

Carbon Streaming reported a net loss of $35.8 million for Q1 2024, including a $33.1 million loss on the revaluation of carbon credit streaming and royalty agreements, primarily related to Rimba Raya. Adjusted net loss was $1.6 million, compared with $2.7 million in the same quarter last year, and other operating expenses were down by $1.4 million year over year. The company sold approximately 94,000 carbon credits during the quarter and generated a quarterly record of $400,000 in cash flows from the Community Carbon and Cerrado Biome streams. As of March 31, 2024, it had $49 million in cash, no corporate debt, and earned $700,000 in interest income. Management did not provide formal numeric revenue or EPS guidance, but said it expects material credit deliveries before year-end, first biochar credit issuance in Q4 2024, and noted $18 million in commitments over the next 12 months tied largely to Community Carbon and MarVivo milestones.

Justin Cochrane said the company’s focus is on cutting costs, moving toward profitability, and protecting a debt-free balance sheet while supporting project partners. He said approximately $500,000 of net cash flow from carbon credit sales was generated in the quarter and that restructuring across the portfolio is now largely completed. On Rimba Raya, he emphasized the situation is fluid, that the company is pursuing its legal and contractual rights, and that it will update the market as developments emerge.

Conor Kearns highlighted the $35.8 million net loss, but stressed that most of it came from the non-cash $33.1 million fair value write-down linked to Rimba Raya after the concession license revocation. He said adjusted net loss was $1.6 million versus $2.7 million a year ago, other operating expenses were down $1.4 million, and improved operating cash flow was supported by reduced expenses and $700,000 of interest income. He also pointed to $49 million in cash, no debt, revenue from approximately 94,000 carbon credits sold, quarterly record cash flows of $400,000 from two streams, and a $400,000 upfront deposit for the Nalgonda Rice Farm stream.

Analysts asked about the pricing and volume for Community Carbon settlements, and management said average prices were around $5 to $6 per credit, which is in line with expectations, though maybe slightly below the original stream economics. On deliveries, Justin Cochrane said biochar credits are currently selling above $100 per credit and that first deliveries from both biochar projects are expected before year-end, alongside material deliveries from Community Carbon, Sustainable Community, and Cerrado Biome. In response to questions on the strategic review, he said restructuring efforts are largely complete, and on the $18 million of commitments over the next 12 months, he said they are mainly tied to Community Carbon and $6 million related to MarVivo, with spending contingent on project milestones.